Question
In: Economics
You are the owner of a local Honda dealership. Unlike other dealerships in the area, you...
You are the owner of a local Honda dealership. Unlike other
dealerships in the area, you take pride in your “No Haggle” sales
policy. Last year, your dealership earned record profits of $2
million. In your market, you compete against two other dealers, and
the market-level price elasticity of demand for midsized Honda
automobiles is -1.8. In each of the last five years, your
dealership has sold more midsized automobiles than any other Honda
dealership in the nation. This entitled your dealership to an
additional 35 percent off the manufacturer’s suggested retail price
(MSRP) in each year. Taking this into account, your marginal cost
of a midsized automobile is $13,000.
What price should you charge for a midsized automobile if you
expect to maintain your record sales?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
The owner of a local car dealership has just received a call from a regional distributor...
The owner of a local car dealership has just received a call
from a regional distributor stating that a $5000 bonus will be
awarded if the owner's dealership sells at least 10 new cars next
Saturday. On an average Saturday, this dealership has 75 potential
customers look at new cars, but there is no way to determine
exactly how many customers will come this particular Saturday. The
owner is fairly certain that the number would not be less than 40,...
The data could be that you researched online by looking at a local dealership to find...
The data could be that you researched online by looking at a
local dealership to find that 1586 of the 2152 vehicles sold are
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population proportion.
You have been asked by the owner of a pre-owned car dealership to set up a...
You have been asked
by the owner of a pre-owned car dealership to set up a way to track
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specific makes and models or cars made in certain years. He also
wants to be able to generate reports based on his sales and reports
on which sales representatives are doing the most business
1.Create a new a
table named SALES_REP. Be sure to create attributes, set a...
you are a business owner, who bought 100 cars from Honda Finance (cars that had been...
you are a business owner, who bought 100 cars from Honda Finance
(cars that had been returned after the leases ended.) The cost was
$500,000, to be paid in 30 days. When the cars arrived, some were
in better condition than others. You sold 25 right away, for
$10,000 each. Just to be safe, you sent the payments directly to
Honda, even though the whole sum was not yet due. The remaining
cars were a hard sell but sold for...
A property owner has provided you with the following information. Assume the owner has no other...
A property owner has provided you with the following
information. Assume the owner has no other assets or liabilities.
The annual gross revenue is $3,275,000. The debt service payment on
the loan is $147,000 per month. The capitalization rate is 8%.
Assets: Cash $ 1,000,000 Land 1,500,000 Building 29,500,000 Total
Assets $ 32,000,000 Liabilities & Equity: Nonrecourse
Liabilities $ 25,000,000 Partner’s Capital 7,000,000 Total
Liabilities & Capital $ 32,000,000
14. What is the property’s NOI?
Calculate the Debt Service Coverage...
The owner of a new car dealership claims the average number of days it takes his...
The owner of a new car dealership claims the average number of
days it takes his dealership to sell a Chevrolet Aveo is 50 days. A
random sample of 50 cars had a mean time on the dealer’s lot of 64
days. Assume the population standard deviation to be 7.0 days. Find
the 95% confidence interval estimate of the population mean.
State the Margin of Error, Best Point Estimate and Include
the written statement
Please list all the work.
The manager of the service department of a local car dealership has noted that the service...
The manager of the service department of a local car dealership
has noted that the service times of a sample of 24 new automobiles
has a standard deviation of 5 minutes.
A.) Compute a 90% confidence interval estimate for the standard
deviation of the service times (in minutes) for all their new
automobiles.
B.) The manager of the service department of a local car dealership
wants to test the claim that the variance of the service time does
not exceed...
The manager of the service department of a local car dealership has noted that the service...
The manager of the service department of a local car dealership
has noted that the service times of a sample of 15
new automobiles has a sample standard deviation of S =
4 hours. We are interested to test the following
hypotheses using α = 0.05 level of
significance:
H0 : σ2 ≤
14
Ha : σ2 >
14
1. Assuming that the population of service
times follows an approximately normal distribution, what is the
proper test statistic?
A.Chi-square distribution...
The manager of the service department of a local car dealership has noted that the service...
The manager of the service department of a local car dealership
has noted that the service times of a sample of 24 new automobiles
has a standard deviation of 5 minutes. A.) Compute a 90% confidence
interval estimate for the standard deviation of the service times
(in minutes) for all their new automobiles. B.) The manager of the
service department of a local car dealership wants to test the
claim that the variance of the service time does not exceed...
The manager of the service department of a local car dealership has noted that the service...
The manager of the service department of a local car dealership
has noted that the service times of a sample of 15 new automobiles
has a sample variance of S2 = 16. A 95% confidence interval
estimate for the population variance of service times for all their
new automobiles is: A. 8.576 to 39.794 B. 4.162 to 16.324 C. 4.126
to 15.760 D. 2.928 to 6.308
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